Underinsurance remains an issue in the UK with an estimated 40% of businesses not being correctly covered. This occurs when a business has insufficient cover to meet its needs, either by its assets being valued lower than their true value, its limit of indemnity being too low, or its maximum indemnity period being too short. Nevertheless, there are simple steps you can take to kick the new year off, to update your insurance policies from 2017, and give your business a refresh with peace of mind that everything’s covered.
Once you’ve reviewed your business, stock, buildings, machinery, equipment, vehicles and given your business a critical overview, here are some tips to ensure that you’re not underinsured:
Business interruption policies:
- You should review your business interruption (BI) policy at least annually to ensure all your information is up to date.
- Calculate a suitable indemnity period that gives your business enough time to recover.
- Consider potential future trends that may impact your BI insurance and include the value of the possibility in your policy.
For more information on how to prevent your business from underinsurance, contact Insync Insurance today.